Understanding who handles insurance claims in Texas homeowners’ associations (HOAs) can be a bit tricky. Several factors come into play when determining responsibility. If you live in an HOA community, it is important to understand insurance claims.
The HOA’s responsibility
In Texas, the HOA typically holds the insurance policy for the common areas. This means they are responsible for filing claims related to property damage, maintenance issues, or accidents that occur within these shared spaces. This includes anything from a damaged fence, broken sidewalks, or issues with community buildings. If the HOA’s insurance policy covers these areas, they will file the claim, and the homeowners’ association will manage the process.
Homeowners’ responsibility
On the other hand, individual homeowners are generally responsible for their own personal property. If damage happens inside a homeowner’s unit or their private property, they may need to file an insurance claim under their own policy. This could be due to things like fire, water damage, or theft. Homeowners should understand the limits of their personal insurance policies to ensure they’re properly covered.
Shared responsibilities and the HOA governing documents
The HOA governing documents, such as the declaration and bylaws, often outline specific insurance responsibilities. They may specify the type of coverage the HOA is required to carry and the extent of the homeowner’s liability. If the documents are unclear, it’s important to review them or consult with professionals to clarify responsibilities.
Understanding the terms of the HOA’s governing documents and each party’s responsibilities helps avoid confusion and ensures the right insurance coverage is in place when needed.